January 2024 San Mateo County Market Update
San Mateo County Real Estate: 2024 Promises a Fast-Paced Market Fueled by Low Inventory and Surging Demand
The San Mateo County real estate market, renowned for its dynamism and desirability, appears poised for an exciting year in 2024. While 2023 was certainly a year of change that brought balance unseen in our market for quite some time, key metrics point towards a significant acceleration in the coming months, driven by a potent combination of decreasing supply and burgeoning buyer appetite.
The Inventory Enigma
One striking indicator is the dramatic decline in available inventory. December 2023 saw a mere 1.3 months of inventory, compared to the 1.7 months recorded in the same period last year. While this is more inventory than our market usually sees at the end of each year – the typical year-end level is 1.1 months – inventory continues to shrink and new inventory is slow to arrive. This suggests we are approaching a more competitive landscape where properties will be more sought after and move swiftly off the market.
Rising Buyer Demand
We gauge demand in a few ways. The volume of new pending sales has seen a fourfold increase in just one week, highlighting a surge in buyer activity. Additionally, one of our recent listings in Foster City sold by a staggering 14% over-asking, far surpassing the county’s average of 1% during the same period. This illustrates buyer appetite for good inventory. We also are hearing anecdotal evidence from fellow agents who are seeing increased activity at open houses and for new buyers entering the market.
Eye on the Fed
External forces, like Fed announcements, could significantly shape the market’s trajectory. Should the Federal Reserve announce interest rate cuts, we could witness a surge in pent-up buyer demand eager to capitalize on lower borrowing costs. This influx of buyers would further tighten the already constrained inventory, potentially pushing prices even higher in the short term. Conversely, sustained high interest rates might keep a lid on buyer exuberance, stretching out the more balanced market dynamic we saw at the end of 2024.
These trends offer insights into what we expect for the 2024 market:
- Sellers Advantage: For those contemplating selling, the landscape presents an opportune moment. The scarcity of available properties places them in a prime position to attract multiple offers and potentially secure exceptional sale prices.
- Buyer Agility: Prospective buyers must adopt a proactive and informed approach. Be prepared to move quickly, present competitive offers, and potentially adjust strategies to navigate a fast-paced environment.
- A Market to Watch: Regardless of your involvement, the 2024 San Mateo County real estate market promises to be a captivating spectacle. Stay informed, monitor trends, and prepare for a dynamic year ahead.
While these predictions provide a clear direction, it’s crucial to remember that the market remains subject to external factors and fluctuations. Nevertheless, the current indicators paint a compelling picture of a vibrant and fast-paced 2024 for San Mateo County real estate. So, buckle up, engage your strategic minds, and embrace the exciting journey ahead!
Ready to delve deeper? Feel free to reach out with your questions. I’m always happy to share my knowledge about the ever-evolving San Mateo County real estate landscape.
